The Research On Self-regulation Of Futures Market

Since Chicago Board of Trade (CBOT) is founded in 1848, the modern sense of the futures market has nearly 160 years of history. The futures market as an advanced organization form of market economy faces market malfunction questions, such as the externality, information failure, and unfair competition and so on. However, the affect of government regulations is limited while government intervention may cause the government malfunction. To efficiently reaction to these problems, all the countries in the world transform their own futures market regulation system. The models of these reformed regulation have some common features, such as the model of three-tier regulation generally recognized by many countries; look on exchange and industrial association's self-regulation as the basis and core regulatory strength, Respect for the laws of the market, Guarantee the market-oriented and flexibility of the regulatory system, Entrusts with the frontline regulators——futures exchange——bigger jurisdiction.Taking advantages of the experiences from developments of other countries' futures markets, our country has established a pattern of the three-tier regulation. However, China's three-tier regulatory pattern has not gotten up the effective regulation in the futures market, but a mere formality, because of the economic system, the legal system, the tradition reasons.This paper studies with the basic concepts of self-regulation of futures market, then analyzes the formation of self-regulation and the relationship of the self-regulation with other system. Further, this paper investigates the pros and cons of the self-regulation of developed futures markets. Finally, through analyzing the specialties of the self-regulation of our country, we find out the deficiency of it and propose the ways to enforce the self-regulation of futures market of our country.